Introduction: Dematiaceous fungi are a group of fungi characterized by the presence of melanin in their cell walls. These fungi are known to cause a wide range of infections in humans, including skin and soft-tissue infections, sinusitis, and meningitis. Infections caused by dematiaceous fungi are typically seen in immunocompromised hosts and manifest most commonly as cutaneous or subcutaneous disease. Systemic infections are exceedingly rare and associated with significant morbidity and mortality. Case Report: Here is a case study of a 75-year-old diabetic male with a rare case of dematiaceous fungal infection in the olecranon bursa. The patient presented with a painless swelling of 3-year duration over the right elbow which started draining pus for 1 month. Surgical excision of the bursa was performed, and histopathological examination and culture confirmed the diagnosis of dematiaceous fungal infection. We discuss the diagnosis, treatment, and management of this rare fungal infection. Conclusion: Although dematiaceous fungal infections are a rare cause of olecranon bursitis, the clinician must send a fungal culture in every case for prompt diagnosis and treatment. Keywords: Dematiaceous fungi, olecranon bursitis, Exophiala, diabetes, immune compromised.